Home MMBIZ News Hong Kong Textile Manufacturers to Shift Base to Myanmar for Cheap Labour

Hong Kong Textile Manufacturers to Shift Base to Myanmar for Cheap Labour

Hong Kong’s textile manufacturers have signed an agreement to set up an industrial park in Yangon in a bid to cut down their production costs by at least half.

Workers at the 200-hectare facility in Myanmar’s commercial hub will be paid about a fifth of those employed in mainland factories, South China Morning Post reported.

Hong Kong’s Liberal Party lawmaker Felix Chung Kwok-pan, representing the textiles and garment constituency, made the deal on behalf of 12 manufacturers to rent half of the 400-hectare Thilawa Special Economic Zone, which is being built by Myanmar and Japan.

“We will start the construction work in mid-2015 and hope the factories can start operating by the end of next year,” Chung was quoted as saying.

The land has been rented for $52 million annually for 50 years.

Chung said the Hong Kong manufacturers planned to employ at least 30,000 Myanmar workers at the market salary of $100 to $120 a month.

“The salary level is only one-fifth of the mainland workers. All products exported from Myanmar enjoy duty-free access to all EU countries after [Western counties lifted] economic sanctions on the country,” Chung said.

Chung said the manufacturers – who will invest $2 million to $3 million in the industrial park – could break even in one to two years.

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